The primary objective of this research is to assess the impact on relative wages of changes in the age, education and sex composition of the labor force. Recent trends in wage differentials between demographic groups will be examined, and the likely effects of further demographic changes anticipated for the 1980-90 period will be analyzed. Effects of a number of government programs (e.g. minimum wage, social security, and training) on the earnings of different age, education and sex groups will also be examined. The methodology is based on the assumption that an individual's wage is determined by two sets of factors. First, as in human capital theory, an individual's productivity depends on age, education and sex. Second, the aggregate quantities of different types of human capital affect the marginal productivity of each. The procedure involves estimation of production functions of education and experience human capital by sex, construction of indices of the aggregates for the period 1967-76 in the U.S., and estimation of an aggregate production function for Gross National Product with the human capital aggregates and aggregates physical capital as arguments. Data from the Current Population Survey microfiles or Michigan Income Dynamics Panel will be utilized.